German Stocks Rise as Daimler Gains, Investors Weigh Data

Feb. 7 (Bloomberg) -- German stocks advanced for a second
day, paring their third week of losses, as Daimler AG and
ThyssenKrupp AG advanced, while investors weighed a weaker-than-forecast U.S. jobs report.

The DAX Index climbed 0.5 percent to 9,301.92 at the close
of trading in Frankfurt, paring its weekly loss to 0.1 percent.
The index has slipped 4.5 percent from its record on Jan. 17
amid a sell-off in emerging-market currencies and signs of
slowing economic growth in China. The broader HDAX Index also
gained 0.5 percent today.

“I’d much rather see good news being good news and bad
news being bad news, but that can easily be turned on its
head,” Michael Ingram, a market strategist at BGC Partners LP
in London, said by telephone. “If the Federal Reserve is truly
data dependent, then they’ll have to rein in on tapering. They
have to react to this data. If there’s another month of bad
data, that’d be a slam dunk in terms of putting a pause on
tapering.”

U.S. payrolls increased by 113,000 in January, following a
revised 75,000 gain the prior month, Labor Department figures
showed today in Washington. The median forecast of economists in
a Bloomberg survey called for a 180,000 advance. The jobless
rate unexpectedly fell to 6.6 percent, the lowest level since
October 2008 even as more Americans entered the labor force.

DAX Extends

The DAX extended gains today after the worse-than-expected
jobs report. The Fed has been scrutinizing employment data to
determine the timing and pace of cuts to stimulus. The central
bank last week said it will press on with a second reduction to
its monthly bond buying, by $10 billion to $65 billion, citing
an improvement in the labor market.

“Some people thought the problems that drove the market
selloff were compartmentalized to emerging markets, but there’s
really a broader worry about growth,” Ingram said. “At the
very least, the U.S. is going through a soft patch.”

Shares had pared gains earlier after Germany’s top court
announced that it has asked the European Union’s highest
tribunal to rule on the legality of the ECB’s as-yet-unused
asset-purchase program. The Frankfurt-based central bank
announced the details of its bond-buying plan in September 2012
amid investor concern that the euro area would break apart and
after President Mario Draghi pledged to do whatever it takes to
save the currency.

Daimler Rises

Daimler added 1.7 percent to 63.54 euros, for a third day
of gains. Zetsche said the auto manufacturer will lower sales
incentives on Mercedes-Benz cars and raise prices on some models
as demand outstrips supply. The CEO told analysts today that he
expects pricing to improve significantly this year.

The world’s third-largest maker of luxury vehicles posted
its biggest two-day gain since July after yesterday forecasting
that its 2014 operating profit from ongoing operations will
exceed the 7.9 billion euros ($10.7 billion) achieved last year.

ThyssenKrupp advanced 2.5 percent to 19.25 euros, its
highest price since Nov. 29. ArcelorMittal said earnings before
interest, taxes, depreciation and amortization will rise to
about $8 billion this year from $6.9 billion in 2013 as steel
and iron-ore production increase to meet a rebound in European
and U.S. demand. It also said fourth-quarter profit jumped 23
percent.

Sky Deutschland AG climbed 1.1 percent to 7.69 euros.
Bankhaus Metzler raised its rating on the pay-TV operator to buy
from sell, saying it should add subscribers and increase the
average revenue per user in 2014. The Munich-based company
yesterday posted higher-than-forecast Ebitda.